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What Motor Insurance covers

What Motor Insurance covers:

The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy: a. Fire, Explosion, Self- Ignition, Lightning b. Burglary/Housebreaking / Theft c. Riot & Strike d. Earthquake e. Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost f. Accidental external means g. Malicious Act h. Terrorism acts i. While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air j. Land slide / Rock slide • What Motor Insurance excludes: The following contingencies are usually excluded under the Motor Insurance Policy

• Not having a valid Driving License • Under Influence of intoxicating liquor/ drugs • Accident taking place beyond Geographical limits • While Vehicle is used for unlawful purposes • Electrical/Mechanical Breakdowns. • Basis of Sum Insured: For Own Damage: The Sum Insured under a Motor Insurance policy reflects the value of the motor vehicle determined based on the concept known as Insured’s Declared Value. Insured’s Declared Value is the value arrived at based on the Manufacturer’s present value and depreciation based on the Age of the Vehicle. For Third Party: Coverage is as per requirements of the Motor Vehicles Act, 1988 .

Compulsory Personal accident cover for owner -driver is also included. Policy can also be extended to cover various other risks like Personal A c c i d e n t t o o c c u p a n t s o f v e h i c l e , Wo r k m e n's Compensation to Driver, etc over and above the cover available to him under statute.

. Motor Insurance

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What Motor Insurance is:

Motor insurance gives protection to the vehicle owner against

(I). damages to his/her vehicle and

(ii). pays for any Third Party Liability determined as per law against the owner of the vehicle. Third Party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988. •

Types of Motor Insurance cover: Broadly there are two types of insurances policies that offer motor insurance cover: a. Liability Only Policy (Statutory requirement) b. Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover) Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.